Vivus sells $110 million of notes; First Bancshares wraps $66 million

By Devika Patel

Knoxville, Tenn., May 1 – Tuesday saw two new private placements announced: Mountain View, Calif.-based pharmaceutical company Vivus, Inc. said it would place $110 million of 10.375% notes, and Mountain Grove, Mo., community bank First Bancshares, Inc. said that it completed a $66 million private placement of fixed-to-floating rate subordinated notes.

Vivus to place $110 million

Vivus plans to sell $110 million of 10.375% senior secured notes due 2024 in a private placement with funds managed Athyrium Capital Management LP.

The notes will be interest-only for the first three years.

First Bancshares places $66 million

First Bancshares completed a $66 million private placement of fixed-to-floating rate subordinated notes. Stephens Inc. and Hovde Group LLC were the agents.

There were $24 million of 10-year notes. Interest accrues at 5.875% per year until May 1, 2023. From May 1, 2023 onwards, the notes will bear interest at a floating rate equal to Libor plus 294 basis points.

The company agreed to sell $42 million of 15-year notes. Interest accrues at 6.4% per year until May 1, 2028. From May 1, 2028 onwards, the notes will bear interest at a floating rate equal to Libor plus 339 bps.

Proceeds will be used for general corporate purposes.

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